- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
Technically, no, you don't have to file a return if your only income is less than $400 from self-employment. However, if you received any 1099-MISC or 1099-K, the IRS did too and you can avoid hearing from them by choosing to file. And since you are going to continue this business, you should go ahead and file a Schedule C this year (it will carry over to next year). And yes, it is a Schedule C you need as a self-employed individual. You will file it along with your personal tax return.
TurboTax Self-Employed is exactly the product you want to use to accomplish this. As a self-employed person, you are responsible for not only the income tax but also Self-Employment tax. Self-Employment tax is the Social Security and Medicare portions. However, these taxes are paid on Net Income, which is "Gross - Cost of Goods Sold - Expenses = Net". TurboTax will walk you through this step-by-step.
You won't have any issues with SE tax this year since you know your net income was low. After you complete your tax return with your new Schedule C, you can go through the 'Estimated Taxes' section and set-up quarterly payments for next year if you need to. The program will let you know if and when you need to make quarterly payments based on your estimates.